Failure as a stepping stone to start-up- Lessons learnt

Failure as a stepping stone to start-up- Lessons learnt

Posted by Venkatesh on December 27th 2016

Failure as a stepping stone to start-up- Lessons learnt
Not that we want to end the year on a negative note , but we figured that putting across a list of  few start-ups which started with a big bang but failed to take off would give us a perspective on why they failed and what can we learn  from these stories.
1. PepperTap
The on-demand grocery service in India which shut shop in 2016 was processing less than 1000 orders when compared to the 20000 in 2015. The reason for it not making it big was  that too many discounts and offers  with not much value were given and  lots of money was spent on deliver logistics .So leveraging this learning the Company is  pivoting to a e-commerce logistic company .
AskMe forayed into many startups like AskMeBazaar, AskMeGrocery etc.Starting from Getit  which was the parent company of Askme it started from their yellow page business, then print to digital data assimilation and started
Trying to get too many fingers into many ventures like AskMeGrocery, AskMePay etc.,they couldn’t sustain in the long run apart from the discount offers and the severe cash crunch they faced after the investing company Astro Holdings pulled out of India. 
3. Foodpanda
It could have been a real competitor to Swiggy when the operations were first launched in India. The Rocket-incubated company recently said it's selling its Indonesian business and rethinking its presence across the rest of Southeast Asia as the Samwer brothers struggle to show profitability for most of their high-burn portfolio of consumer internet startups. Foodpanda's monthly cash burn has now come down to less than a million dollars. Over the past one year, Spyro Korsanos, the global head of corporate development at Rocket Internet, has been stationed in India to get the business back in shape and is eying for fresh funds.
With Uber is here to stay, and their model which is more scalable tackling one city at a time. Uber rival Karhoo shut down after blowing through a reported $250M in funding Karhoo’s success was to be based on very large economies of scale, but it didn’t appear to have the reach with consumers to achieve anything like enough scale.
5. Ola Bike
Ola launched its bike as a taxi service in March 2016. However, within a day, Ola faced a law infringement notice from Karnataka State Transport Department for violating the Motor Vehicles Act and continuing to operate without requisite permission. Consequently, the company quietly withdrew the bike taxi icon from the app and the service was no longer available. It stated in a tweet that they were currently working on its bike services and will keep the public posted once they are up and running. Without proper understanding of the local legal procedures for establishing taxi services seems to be the case for many taxi services like Getmi and other services trying to cash in on the bike rental services.


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